Vedanta dips on back of Tuticorin stir

The stock of Vedanta extended its losing streak on Friday. The stock has fallen close to 10 per cent in the last three days. Vedanta-owned Sterlite Industries is facing protests in Tuticorin, Tamil Nadu on allegations of pollution from its copper smelting plant situated there.

The state government and police have been blamed for disproportionate use of force against unarmed protesters, where they resorted to firing without warning, causing the death 13 protesters who were opposing the operation and expansion of the said copper smelting plant.

In a clarification about the plant, the company has informed that the Copper Smelter Plant 1 at Tuticorin was shut since March 27, 2018 for maintenance work and the state pollution control board had order disconnection of electricity supply to the plant on May 23, 2018. The company assured that it is working with the authorities to ensure compliance of regulations.

In financial terms, the Copper Smelter contributed more than Rs. 1,373 crore, that is, approximately 5.4 per cent to Vedanta’s consolidated EBIDTA for FY2017-18. The company notified that the carrying value of property, plant and equipment of the plant was approx. Rs. 2,131 crore as on March 31, 2018.

At 10:01 hours, the stock of  Vedanta Limited was quoting Rs. 243.00 per share, down 2.96 per cent on Friday. The stock is trading lower than its 20-day and 50-day moving average.